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"The great irony of being poor is that you are too poor to save,
but too poor not to save."
What is the Impact of Saving?
Historically and still today, the poor are more likely to have access to credit than to a basic savings account. Yet it's savings that really help people break the chains of poverty. Having the opportunity to save in a trustworthy institution means people living in poverty no longer have to take out expensive loans to cover the costs of living, such as children's school fees, medical emergencies or even food. Instead, they become their own interest-free lender, and that makes the small amount of money they have go a lot further.
People save for all different reasons. Whatever the purpose, a poor person putting forth the effort and sacrificing today to plan for tomorrow deserves access to a safe and convenient place to save. That's what credit unions provide. In fact, credit unions exist to provide safe and affordable financial services to people who've largely been left behind by other financial institutions.
The impact of saving goes far beyond the individuals you meet on MatchSavings.org. The ripple effect of saving on a regular basis builds more stable families, communities and local economies. We're not just talking about an economic change, though. A culture of savings can breed generations of people lifting themselves out of poverty through their own dignified means.
In Brian's words...
Why promote savings before loans?
What is the Impact of MatchSavings.org?
We're starting small, and we're ready to grow. MatchSavings.org supports 120 people through eight savings groups in the state of Veracruz, Mexico. MatchSavings.org works with a Mexican credit union called Caja Yanga to bring a full range of financial services to the rural poor in the mountains of Veracruz. People in these remote villages would normally have to travel up to three hours to reach the nearest financial institution. Instead, credit union employees make the trek to the community so that the individuals can make more productive use of their transportation money and time.
Only 25% of people in Mexico have access to a financial account, compared with 91% in the United States and 96% in Canada.1 And most people who have never accessed formal financial services live in rural areas, where it's estimated that just 5% of the population have had the opportunity to open a savings account or receive credit from a formal financial institution.2
Not only do MatchSavings.org participants save time and money, they learn the value of saving little-by-little to fulfill their daily needs and to realize their dreams—without incurring debt. This is all with the hope of providing a brighter future for their families. Your contribution through MatchSavings.org gives them the boost and encouragement to get started.
As our MatchSavings.org community grows, we'll expand the program to more credit unions and first-time savers in more countries.
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Savings as a Tool for International Development Microsavings experts discuss the relevance of MatchSavings.org in alleviating poverty. New America Foundation | Global Assets Project Washington, D.C. Oct. 15, 2009 |
Other Ways You Can Make a Difference
Spread the word. One of the best ways to support a program you believe in is to tell people about it! Tell them what makes MatchSavings.org different from other charitable organizations. Talk about some of the saver stories you've read and how their match can help people realize their dreams for the future.
- Send a simple e-mail
- Link to MatchSavings.org from your Web site
- Join the MatchSavings.org cause on Facebook
- Organize a savings group in your community to match savings
- Blog about the importance of savings
- Share about the impact of savings in response to articles on the financial crisis
Learn about the importance of savings in your own life. What are your dreams? How could saving each day, week or month help you realize them? Find a credit union in your area to help get you started. Make a savings goal and commit to realizing it through regular deposits and discipline.
Look beyond savings. Credit unions are oftentimes thought of being just another option among an array of financial institutions, but they can mean the world in the lives of the working poor. World Council of Credit Unions (WOCCU), which developed and oversees MatchSavings.org, works with credit unions in developing countries to bring people the financial tools they need to pull themselves out of poverty.
The Worldwide Foundation for Credit Unions, WOCCU’s charitable arm, funds community outreach programs for credit unions and their members. In addition to our work in Mexico, some of our innovative programs include building community-owned financial institutions in Afghanistan and bringing financial services to the rural poor in Kenya.
Join us in the effort.
1 World Bank. Finance for All? Policies and Pitfalls in Expanding Access, 2007
2 Mexican Ministry of Agriculture, Livestock, Rural Development, Fishing and Food (SAGARPA), 2008.
©2010 World Council of Credit Unions | www.woccu.org
